Optio, an independent international specialty managing general agent (MGA), has announced that international private equity firm Cinven, together with global investment group La Caisse (formerly CDPQ), have agreed to jointly acquire a majority stake from Preservation Capital Partners (PCP).
This investment will support Optio’s next chapter by supporting the expansion of its specialist underwriting capabilities, the broadening of its product offering, and the growth of its international presence.
The MGA’s current management team will remain significantly invested, and will continue to lead the business following completion of the transaction.
Since PCP’s initial investment in 2018, Optio boasts a diversified platform writing over £460 million in annual premiums across 18 offices in 15 countries.
The company operates across Europe, the US, the Middle East and Asia and writes over 30 products, with anchor capacity from Hiscox alongside several additional A-rated capacity providers.
Deepak Soni, CEO, Optio Group, said: “We are delighted to welcome Cinven and La Caisse as our partners as we embark on the next chapter of the Optio story. Over the past few years, with the support of PCP, we have successfully built a diversified global platform through investment in our teams and the acquisition of high-quality specialist MGAs.
“Throughout this period, we have remained focused on delivering strong underwriting results for our insurer partners and outstanding service to our brokers. We are confident that, together with our new shareholder group, we will continue to build on these foundations, pursuing our growth strategy and expanding our capabilities while preserving the entrepreneurial culture and specialist expertise that define our business.”
Cinven and La Caisse each have deep experience in the specialty underwriting sub-sector.
The Cinven team has known the company’s management team for more than two years and, together with La Caisse, has built a strong relationship with management.
Luigi Sbrozzi, Partner and Co-Head of the Strategic Funds at Cinven, said: “Optio is a marquee opportunity in the MGA space, a financial services sub-sector where Cinven has deep expertise and a strong track record.
“Deepak and the wider management team have built a leading and differentiated home for specialty underwriting talent, and we are excited to partner with them as they continue to scale the business both organically and through further M&A. We are also delighted to be partnering with La Caisse on this transaction and look forward to working together to support Optio’s next phase of growth.”
Martin Longchamps, Executive Vice-President and Head of Private Equity and Private Credit at La Caisse, added: “Specialty insurance is a market where technical underwriting expertise, disciplined risk selection and scale increasingly matter.
“Optio is well positioned in that environment, with a differentiated platform serving complex insurance markets, a strong European base and clear international growth potential. Our investment reflects La Caisse’s conviction in the long-term fundamentals of the sector, our experience across the insurance value chain, and our focus on backing high-quality businesses alongside sophisticated, like-minded partners.”
The transaction is subject to customary regulatory approvals and other closing conditions. The specific financial details of the transaction were not disclosed.
PCP and Optio were advised by Evercore (Financial Advisor), Skadden (Legal Advisor), Oliver Wyman (Commercial), PwC (Financial, Tax, Operations & IT, Underwriting) and Chris Patrick Consulting (Debt).
